The H.R. 1568: Transportation and Logistics Hiring Reform Act of 2017 provides a better overall level of safety and accountability for all parties involving in the logistics chain.
With a minimum of 35 days before a shipment can be processed and sent out the hired motor carrier must verify that they:
Registered with and authorized by the Federal Motor Carrier Safety Administration (FMCSA) to operate as a motor carrier or household goods motor carrier.
The FMCSA registration process requires that companies must define the type of Motor Carrier, Broker, Intermodal Equipment Provider (IEP), Cargo Tank Facility, Shipper and Freight Forwarder business operation they plan to establish.
The FMCSA monitors and ensures compliance with motor carrier safety (all carriers) and commercial (for-hire, non-exempt carriers) regulations. Companies may find they are subject to registration requirements for both safety (safety registration) and commercial regulation (operating authority registration). Companies subject to the safety requirements are also required to obtain and maintain a USDOT Number.
Maintain the minimum insurance coverage required by federal law.
All motor carriers, freight forwarders, and broker authorities must have specific insurance and legal process agent documents on file before the FMCSA will approve applicants. The FMCSA only requires a minimum of $750,000 liability insurance, but many 3PLs require at least $1,000,000 liability coverage. It is essential to consider the contents of the freight when choosing proper coverage.
The driver must not have an unsatisfactory safety fitness rating issued by the FMCSA and has not otherwise been ordered to discontinue operations.
As a part of compliance, all drivers need to maintain good health and to have routine physicals and alcohol tests to ensure their safety and the safety of everyone on the roads.
It is important to note, that accidents do happen even when all safety precautions have been met. For this reason, the FMCSA only allows a carrier to proceed with litigation once they have proven proper compliance with this safety bill. For example, there might be an alleged event where the broker is prosecuted for their poor selection or retention of a motor carrier was negligent. When a 3PL is compliant with the Transportation and Logistics Hiring Reform Act of 2017, they alleviate the concern that they did not do their jobs in screening the carriers and drivers. East Coast Transport is interested in compliance with the H.R. 1568 Act because they understand how important it is to have compliance, safety, and accountability when moving freight. Regardless of the commodity.